FLASH COMMENTS:

Last week, I did my deep dive into my single stock quantitative selection model that I call ERM and was looking quite closely at the earnings revisions of nearly 4000 U.S. companies.  So, I had fewer client calls then normal and spent a bit less time looking at the day-to-day wiggles in the market.   

The market continues to bounce around with nearly every piece of macro news between recession, inflation, more Fed/less Fed, and crude up/crude down to name just a few things that impacted recent trading.  My work continues to be quite clear, and I suggest stop watching every data point looking for a sliver of bullish news to support an optimistic outlook.  Yes, I know being a bear isn’t popular and we all have to be on alert because there is quite often a bull market in something.  And yes, there will be a time to start becoming more constructive again, but my work says that point is still on the horizon. 

In my view and based on my key indicators, the Fed is going to keep tightening until there is a clear 3-5 month trend that inflation is down and that the labor market is weakening.  Last week's data release of the monthly employment report did not support the view of the immediate collapse of the U.S economy...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)